Thursday, August 11, 2016

Gold World News Flash

Gold World News Flash

The Irrational Bias Against Gold

Posted: 11 Aug 2016 12:39 AM PDT

When I conceived of creating an RRSP-eligible, open-end mutual fund that held precious metals without compromising the fundamental attributes of the metals, I thought that such a fund would be embraced by mining company executives, financial advisors, institutions and retail investors – I was wrong.

The Colombian Peso Going Higher

Posted: 11 Aug 2016 12:35 AM PDT

The Colombian peso has increased value against the US dollar as laid out in previous analysis, The Colombian Peso!, produced on 21st February 2016 when the USDCOP was trading at 3.358,500. Price is now 2.974,000. I expect the USDCOP currency pair to continue its decline so let’s review the daily chart.

Donald Trump Fights Back!

Posted: 10 Aug 2016 09:50 PM PDT

Donald Trump and Alex Jones fight back against the Globalists attempting to destroy America and end prosperity as we know it. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers ,...

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It’s Time To Prepare For Hyperinflationary Collapse — James Wesley Rawles

Posted: 10 Aug 2016 08:45 PM PDT


Author, Patriot and Founder of James Wesley Rawles returns to SGT Report to discuss current events, including the Clinton crime family, the fragile state of the global economy and the coming hyperinflationary collapse of fiat currencies around the world. James says, it’s time to prepare with “tangibles, tangibles, tangibles.”

A New Wrinkle In The Paper Gold Con Game

Posted: 10 Aug 2016 07:42 PM PDT





A New Wrinkle In The Paper Gold Con Game

Posted with permission and written by Craig Hemke, TF Metals Report (CLICK HERE FOR ORIGINAL)



Here's a story that came out earlier today. Maybe it's just me, but it's easy to see a Bullion Bank plot here. For months, we've documented all of the various points of demand for gold in all its forms. And now, as The Bullion Bank Paper Derivative Pricing Scheme is being stretched to extremes, suddenly the LME wants to offer another form of paper gold with which to screw everyone.


And note who's involved here...not only is it the LME working in conjunction with the Evil Of Evils Goldman Sachs, they're all "working in conjunction" with The World Gold Council. IF ANYTHING SHOULD PROVE FOR YOU ONCE AND FOR ALL THE THE WGC IS A SHADY, NASTY AND WORTHLESS ORGANIZATION, THIS SHOULD DO IT! Here's your link from Reuters detailing the news:


LONDON, Aug 9 The London Metal Exchange (LME) said on Tuesday it is planning to launch spot and futures contracts for gold and silver in the first half of 2017, adding to its list of products which includes copper and aluminum.

The 139-year old exchange is working in collaboration with the World Gold Council, an industry body backed by gold mining companies such as Barrick Gold and Goldcorp, and is supported by five banks and proprietary trader OSTC, which have committed to provide liquidity.

"The initiative has been driven by the need for greater market transparency, to support and aid ongoing regulatory change, provide additional robustness to the precious metals market, broaden market access," the exchange and its partners said in a statement.

Financial market transparency has been a major focus for regulators after evidence of price manipulation in lending rates between banks in the Libor scandal in 2012.

As regulators continue to review commodity markets, the bullion industry is braced for further changes that could ultimately include a mandatory central clearing or more expensive bilateral trading.

Banks and bullion operators have looked for ways to preserve London's role as a major global trading centre, while increasing transparency of a market which can trace its roots back to the 17th century.

The London Bullion Market Association (LBMA), another industry body whose members are mostly banks, refiners and dealers, separately asked exchanges and technology firms in October last year to bid for services such as a gold exchange or a clearing platform.

London currently dominates the global over-the-counter gold trade with an estimated $5 trillion changing hands every year, while New York's Comex contract sets the benchmark for futures.

The LME plans physically delivered spot, futures and options contracts. The gold will be 100 ounces in size (worth around $133,600 at current prices) and silver 5,000 ounces. All contracts will be cleared through LME Clear, the exchange's clearing house, which has an annual traded notional value of $12 trillion.


The World Gold Council CEO Aram Shishmanian said that they had initially engaged with around 30 firms, but only Goldman Sachs, ICBC Standard Bank, Morgan Stanley, Natixis and Societe Generale signed up to support the contracts from the launch day.

After the transformation of precious metals benchmarks in 2014, led by a regulatory drive to make them more robust to attempts of manipulation, banks have become more cautious.

Several of them have run into trouble with regulators over misdemeanours in their precious metals trading business.

The benchmarks are widely used by producers, consumers and investors to trade and value the metal. Gold and silver are among the eight major market benchmarks that are regulated by Britain's watchdog Financial Conduct Authority (FCA).

Frankly, my favorite part of the entire article is this:


Several of them have run into trouble with regulators over misdemeanours in their precious metals trading business.

"Several of them have run into trouble over misdemeanors"....GIVE ME A BREAK. Misdemeanors. That's pretty funny.


Anyway, the new "gold" contract looks to begin trading by summer of next year. (Maybe the entire fraud will have collapsed by then?) Here are the actual specs. Have a look and see if you notice a rather critical distinction/component of this latest fraud:


Here, please allow me to help. What word jumps off the page at you from this screenshot below? (Hint: It starts with a "U".)



So the new, "physically-settled" LME gold contract is one where "seller transfers unallocated gold to...the LPMCL member bank (Goldman)...and buyers receive unallocated gold at any LPCML member bank (Goldman)". THAT SOUNDS LIKE A GREAT FREAKING DEAL! WHERE DO I SIGN UP?


But, seriously, what a gigantic SCAM this all is! These Banks will do literally ANYTHING to perpetuate their Paper Derivative Pricing Scheme. This latest move to collect gold and fees while scamming investors into believing that they own "physical gold" is just another example. And again, that the WGC is "collaborating" in this con should tell you all you need to know about that organization, too.


You don't own it unless you hold it. Period, end of story. Sadly, as we've come to learn over the years, everything else is just a Banker scheme to screw you.




Please email with any questions about this article or precious metals HERE






A New Wrinkle In The Paper Gold Con Game

Posted with permission and written by Craig Hemke, TF Metals Report (CLICK HERE FOR ORIGINAL)

2016 Will End With Economic Instability And A Trump Presidency

Posted: 10 Aug 2016 07:30 PM PDT

Submitted by Brandon Smith via,

Political and economic events tend to swing like a pendulum, or move like the tides.  What you think you know today, according to the mainstream mood, can swiftly change tomorrow.  Sometimes this is mere random coincidence, but often it is engineered by the powers that be.  When discerning coming trends, the only assumption I recommend people operate on is that the globalists will play the long game; the short game is only relevant as far as it serves the long game.

What is the long game?  The globalists have openly admitted their goal in numerous mainstream publications, but my favorite example is the January 1988 issue of the Rothschild run magazine The Economist.  The issue pronounces boldly that investors should “get ready for a global currency” by 2018.  I examine this issue in detail in my article The Economic End Game Explained.

The Economist article mentions the sacrifice of “some” economic sovereignty of nation states, the end of the dollar’s world reserve status and the rise of the IMF’s Special Drawing Rights basket currency mechanism as a “bridge” to a single global currency.  None of these changes can be accomplished without certain parts of the world suffering severe financial instability first.  Not only is this a mathematical inevitability, such crisis is also a useful tool for elitists to mold the public’s collective psychology.

So, let’s make this crystal clear — the long game is the total and OPEN centralization of economic and geopolitical power into the hands of a select few financial elites.  Not the pulling of strings behind the curtain.  Not shadow governance.  OPEN governance of the world by the elites, accepted or even demanded by the people.

There are a lot of assumptions floating around economic conditions and election developments right now that do not take into account this long game.  The first being that globalists “are losing their grip on the situation.”

I would have to disagree.  In terms of political leaders (East and West) and surface economic indicators, the elites have more control than ever.

The argument of the “bumbling globalists” became rather popular the days after the initial success of the Brexit referendum.  This was of course based on the assumption that the Brexit is damaging to the globalists rather than helpful to them.  I outline why the Brexit is a perfect scapegoat for a fiscal downturn engineered by the elites in my article Brexit: Global Trigger Event, Fake Out, Or Something Else?, published before the Brexit vote took place.

Since the referendum, central banks and politicians around the world have begun calling for a single monetary and fiscal policy initiative meant to “head off any ill effects of the Brexit.”  That is to say, the open calls for one economic authority to rule them all have now begun.

The numerous warnings by the financial elites of a coming crisis event have most people in the mainstream and even many alternative analysts scratching their heads.  For those that hyper-focus on stock markets, all seems to be well.  Of course, these people only have an attention span that lasts until the next market ticker opens for the day.  They aren’t looking at the bigger picture.

To be fair, though, the mainstream media is really laying on the fake-out propaganda thick.

July and August have produced considerably strange behaviors from stocks so far, with a record number of days positive, followed by a near-record number of days negative.  I would consider this a form of volatility that should not be overlooked.  The media have so far shrugged off these developments and only noted that stock valuations are still high despite the Brexit “surprise.”  Their assertion has been that the Brexit “had no effect;” completely ignoring the fact that such events can have long term consequences rather than immediate consequences.

Oil prices have plunged back towards lows last seen at the beginning of the year, something I stated would eventually occur after the predictable failure of the OPEC meeting in Doha.  Low global demand continues and production has not slowed in any meaningful way.

There has been a steady correlation the past year between oil and stocks.  The current decoupling is unlikely to last very long and stocks should track down to oil by September as speculators give up trying to hold crude offshore in a useless effort to drive prices higher.  The mainstream has said little to nothing about this decoupling or its eventual consequences.

The past two months of employment numbers have been an epic farce, with the media playing up the supposed number of jobs added while mentioning nothing about the nearly 95 million working age Americans removed from the rolls and no longer counted as unemployed.  That’s almost one third of the U.S. population, and around half of all working age Americans that have no job.

The Bureau of Labor’s claim when cornered by this statistic and the fraudulent nature of their primary employment percentages?  “Those people don’t want to work, therefore they should not be counted…”

The better than expected jobs reports have so far allowed markets to levitate.  I would assert, however, that stocks are merely treading water at the deceptively calm center of a hurricane.

The reality is, they cannot hide an economic collapse forever.  Negative financial effects are going to touch ground somewhere, and the data is going to sneak through.  Case in point; U.S. productivity is now at 37 year lows despite government statistics claiming fully recovered employment.  You would think that in such a happy labor environment portrayed by the BLS productivity would grow.  This is not the case.  Perhaps a total unemployed population of over 100 million people may be contributing to the implosion of U.S. productivity...?

Outside of the U.S., European banks are on the verge of a breakdown, and central bank stimulus measures and rate cuts are adding minimal extra boost to markets.  They aren't currently falling much, but they aren't rallying much either.  In essence, equities are becoming stagnant due to artificial support from central banks and there is little incentive for investors to participate any longer.

In light of the latest manipulations of economic data and the jawboning of stocks since March, some alternative analysts have pronounced that the central banks plan to prop up markets “indefinitely,” or at least until Hillary Clinton can win the election.

This is an unfortunate assumption by the alternative crowd…

I remember before the Brexit vote a vast majority of independent economists and liberty analysts argued that the elites would “never allow” the U.K. referendum to pass — that they had the power to rig the vote however they pleased.  If this is the case (and I agree it is the case), then clearly the elites WANTED the Brexit to pass.

It would serve alternative analysts well to recall specifically the rigged polling numbers in the weeks leading up to the Brexit which showed a definite win for the “Stay” crowd.  Interesting how that all turned out, isn’t it?

I am consistently reminded of the Brexit surprise when I look today at the polling numbers on the U.S. election.  The erratic and inconsistent polling shows Trump climbing, then suddenly sinking days later, then climbing again without any clear catalysts.  Many polls contradict each other, just as the polls did before the Brexit, and, the same kind of circus atmosphere is present, if not more prevalent.

It may be possible, if not certain, that this is all a game.  The Brexit outcome was predetermined, which is how elites like George Soros scored successful investment bets on the referendum passing, and the reason why the Bank for International Settlements gathered central bankers from around the world as the vote was taking place.

I believe that the U.S. presidential election has also been predetermined; with a Trump win.  Some people might be confused by this concept.

Trump’s campaign has been consistently compared to the Brexit campaign by globalists in the media, as well as by mainstream pundits.  They call it a "dangerous" trend of rising populists.

The propaganda surrounding the Brexit asserts that the referendum will eventually lead to global economic crisis; and already, central banks and politicians are attempting to tie the Brexit to anything that might go wrong fiscally in the near future.

The propaganda surrounding Trump is the same; that Trump is unfit to lead America and that his economic policies will end in global financial ruin.

One constant connects the Brexit referendum and Trump — both are supported by conservative movements with anti-globalist leanings.

I submit that there is in fact a wider economic crisis on the way, and that the elites plan to use the Brexit and Trump as scapegoats for this crisis.

I have stated this before, but I think the idea needs repeating:  The globalists need the economy to turn unstable in order to create a rationale for a centralized economic authority and a single global currency system.  This is why they have consistently called for a “coordinated global central banking policy” after the Brexit.  This is why they continue to warn of a fiscal crisis even though stock markets remain at all-time highs.

If Hillary Clinton, a well known globalist puppet deep in the bedrock of the establishment, wins the election only to have the economy tank, then the globalists will get the blame.

If Trump is either allowed in office, or is placed in office, and the economy tanks, CONSERVATIVES, the primary enemy of the globalists, will get the blame for the resulting crisis.

To reiterate, the globalists have created the conditions by which an economic crisis can be triggered at the time of their choosing (within certain limits).  They are then either supporting the success of seemingly conservative based movements and candidates, or simply refusing to interfere with them.  This is being done so that the globalists can then blame the crash they created on conservative movements.

This allows them to demonize not just conservatives, but the conservative philosophy in general; labeling it a poisonous ideal akin to fascism.  Their solution?  Erase all elements of conservatism and sovereignty from society for the sake of the “greater good” of the collective.

This is part of the long game.

As I noted after the U.K. referendum, I believe the Brexit to be part of a “one-two-punch combination,” and that the second punch has not arrived yet.  My view appears to be supported by the number of financial elites warning investors to pull out of markets today before it is too late.  Obviously, they know something the rest of the financial mainstream does not.

This sets up the elites as “prophets” rather than criminals, as economic perception turns negative and the public begins looking for answers.

In the meantime, I believe a softer downturn will begin before the election takes place, most likely starting in September.  This will give a boost to the Trump campaign, or at least, that is what the polls will likely say.  I would also watch for some banking officials and media pundits to blame this downturn on Trump’s rise in the polling data.  The narrative will be that just the threat of a Trump presidency is “putting the markets on edge.”

Many claim the Federal Reserve will not raise rates in 2016 with the election threatened by a Trump candidacy.  I believe the Fed will in fact raise rates, as they always do going into major recessions.  If they do not raise rates before the election, they will most certainly raise rates in December if Trump is in the White House.

I realize that many will argue that Trump will “never be allowed to win,” just look at how the media demonizes him.  But this is what people argued before the Brexit, and they were wrong.  I suggest that this demonization campaign is much like the doom and gloom used by globalists before the UK referendum — it is not meant to stop the event.  It is not meant to prevent Trump from getting into office, it is meant to make Trump and conservatives a scapegoat for an impending crisis once he is IN office.

While I certainly am not advocating Hillary Clinton in the Oval Office, I have to point out that a Trump presidency serves the globalist long game better than a Clinton presidency...

First, the elites need an international financial crisis to encourage the public to support a single central bank policy and authority.  They can blame such a crisis on Trump and the Brexit and divert attention away from themselves.


Second, the elites need to remove the philosophy of conservatism as an obstacle to global collectivism and the destruction of national sovereignty.  Again, conservatives will be blamed as participants and co-conspirators in the fiscal crisis, and painted as so devilish that no future generation would want to be a associated with conservative thought.


Third, the elites need to kill the dollar’s world reserve status.  And yes, even this could be blamed on Trump as Saudi Arabia moves away from the dollar as the petro-currency and multiple nations begin to protest Trump’s “isolationism” by dumping the dollar.  In October, China (with the approval of the IMF) begins spreading SDR-based liquidity around the world, launching the next phase of the end of the dollar as world reserve right before the U.S. election climax.


Fourth, the elites need internal conflict within the U.S. and/or martial law in order to justify international intervention.  A Trump presidency will most likely be met with accelerated violence from social justice activists and general riots from the entitlement class.  I believe Trump will use martial law measures, though he probably will not label this "martial law".  There may even come a day when globalist “leaders” will assert that Trump cannot be allowed access to a nuclear arsenal, and that he must be stopped.

If Trump turns out to be anti-constitution, and the liberty movement acts to stand against him — we will be accused of working for the social justice miscreants, or we will ironically be accused as agents of the globalists.  If we fight against a globalist intervention or the social justice mobs, we will be accused as fascists by the international community.  Truly, with Trump as president, many doors open for the elites.

That said, this does not mean the elites will be ultimately successful in their endeavors.  There are always unknowns to any grand scheme.  As Mike Tyson famously said, “Everyone has a plan until they get punched in the mouth.”  I believe the elites will be surprised by some sizable punches in the mouth.  Until then, though, their current strategy appears to be running on schedule.

Even Reuters Gets It: "Money-Printing Has Pushed Stocks Out Of Kilter With Economic Reality"

Posted: 10 Aug 2016 07:00 PM PDT

It appears that the world's central-scammers have finally gone too far. In a shockingly Zero-Hedge-ian statement, Reuters is forced to admit that "spooked by the end of a 30-year bond bull run and bouts of money printing which have pushed stock values out of kilter with economic reality," high-profile investors are turning their backs on financial assets and favoring real assets.

Of course, all it took was 7 years of unprecedented monetary policy experimentation to decouple the fantasy of equity markets from the harsh reality of the real economy...


But, as Reuters explains, alternative investments such as a Ferrari 335 S Scaglietti, a rare blue diamond or a case of Romanee-Conti Grand Cru wine from Burgundy are going mainstream as investors grapple with ultra-low interest rates and volatile stocks.

Rare coins, collectible jewelry and classic cars join fine wine among the top performers in the year to end-March...

And fine wine saw its largest positive monthly movement since 2010 in July with the Liv-ex Fine Wine Investables index, which tracks around 200 Bordeaux red wines from 24 leading producers, up by 4.5 percent. It is up 13.8 percent so far this year, compared with 6.9 percent for the S&P 500 and 8.9 percent for the FTSE 100.

"As a physical asset, fine wine tends to perform well in periods of uncertainty...and is also not linked to the prices of other assets in most circumstances," said Andrew della Casa, Founding Director of The Wine Investment Fund.

Over a five-year period, cars, coins and jewelry returned 161 percent, 73 percent and 63 percent respectively, eclipsing Britain's FTSE-100 stock index, which was up 15 percent since the start of 2011.


But with future demand tough to call, Andrew Shirley, author of the Knight Frank Wealth Report, strikes a note of caution.

"You should still only be buying the investments of passion that you will enjoy owning and will give you pleasure even if their value goes down – there is certainly no guarantee that values will continue to rise.


"There is an argument that such investments add diversity to portfolios, provide a hedge against inflation, and unlike equity-based investments, offer a degree of tangibility but like gold they tend not to generate any income and can also be illiquid, and subject to changes in taste and fashion."

Gold, another so-called safe haven from top-of-the cycle bonds and expensive stocks, is also enjoying a purple patch, BlackRock research shows.

With returns up 26.8% year-to-date - its best year since 1979 - gold has returned almost twice as much as higher-risk emerging market dollar bonds and non-U.S. Developed market bonds, and almost five times a 3.1 percent return on U.S. large caps, it said.

Analysts at Unigestion describe the gold price rise as a "classic" market response to stress triggered by Britain's shock decision to quit the European Union and fears of negative rates but it was difficult to predict how long these circumstances supporting a rush into gold might last.

*  *  *

So with yields at record lows and stocks at record highs, the world is waking up to the reality that financial assets are nothing but smoke-and-mirrors, blown and reflected by central planners' manipulation to keep the confidence alive. The problem is, the elites are stepping away, leaving the greatest fools to fight over the last morsels of 'easy' money before the inevitable new-world-order-ushering plunge occurs.


SGT REPORT NEWS BRIEF & ‘SILVER: The Tide Has Turned’ w/ David Morgan

Posted: 10 Aug 2016 05:24 PM PDT


This is a SGT report news brief and bonus interview with David Morgan from The Morgan Report. Thanks for tuning in.

Gold Price Closed at $1344.30 Up $5.30 or 0.40%

Posted: 10 Aug 2016 04:43 PM PDT

10-Aug-16PriceChange% Change
Gold, $/oz1,344.305.300.40%
Silver, $/oz20.130.321.62%
Gold/Silver Ratio66.768-0.811-1.20%
Silver/Gold Ratio0.01500.00021.21%
S&P 5002,175.496.250.29%
Dow in GOLD $s284.41-1.70-0.60%
Dow in GOLD oz13.76-0.08-0.60%
Dow in SILVER oz918.63-16.72-1.79%
US Dollar Index95.57-0.56-0.58%

Dinesh D'Souza: "The KKK was the domestic terrorist arm of the Democratic Party"

Posted: 10 Aug 2016 03:30 PM PDT

Author and fillmaker Dinesh D'Souza ("Hillary's America") explains the Democrat's "sordid" history to's Tiffany Gabbay. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers...

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END TIMES SIGNS August 10 2016. Signs In The Heavens And On Earth. Prophecy Fulfilled.

Posted: 10 Aug 2016 03:00 PM PDT

This Video is an end times update, showing the latest end times events that occurred on August 9-10 2016. Events are happening on a daily basis that prove we are in the End Times. Time Is Running out, repent before its too late! The Financial Armageddon Economic Collapse Blog tracks...

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Gold Meets the “Perfect Storm”

Posted: 10 Aug 2016 02:22 PM PDT

This post Gold Meets the "Perfect Storm" appeared first on Daily Reckoning.

Gold is set to benefit from a "perfect storm" of dwindling investment alternatives and greater investor risk, according to the August report of the World Gold Council (WGC).

It says central banks are increasingly pulling out all the stops to stimulate growth, which has driven yields on government bonds to absurdly low levels. Fewer than 40% of government bonds around the world available to average investors have a positive yield, and only 17% yield more than 1%.

Investors have to take on additional risk to generate any sort of meaningful returns. And this search for returns is pushing investors toward gold to balance the risk, according to the WGC:

"In this environment, we believe investors are using gold to hedge portfolio risk as they add more stocks and low-quality bonds to their asset mix."

In its report, it pointed to weak demand for 10-year Japanese government bonds at a recent auction as evidence that investors are losing faith in "unconventional monetary policies."

This is all extra evidence that we're living in the early days of a strong bull market for gold and mining shares.

So far this year, gold prices have moved up by just under 30%. There appears to be solid, market-based support for gold prices. New gold supply is contracting. Plus, there's continuing demand for yellow metal from China and the West — and certainly from the U.S., for investment reasons.

There's also demand from Europe, due to uncertainty about the euro, the European Union post-Brexit and general sociopolitical problems there. This along with central banks across the globe pursuing low interest policies and "negative rates," which tend to reduce the holding costs for gold. Thus, it's all good for gold.

If anyone knows about gold investing, it's John Hathaway, manager of Tocqueville Asset Management and its family of gold funds. In his recent quarterly letter, Hathaway makes a strong case for owning gold and gold-related shares, based on all these factors.

First, he says the central bank "war on savings" is driving investors toward safer, alternative assets like gold. Second, at zero interest, bonds no longer offer a "stability hedge;" thus, investors migrate to other assets like gold.

Finally, he also says there's a growing shortage of physical gold in the world, and even modest increases in buying for delivery will drive prices much higher.

In the medium and long terms, I and my partner at Rickards' Gold Speculator, Jim Rickards, are very optimistic about where gold prices are heading. We're especially optimistic about how investors can obtain high leverage to value from well-selected small-cap mining plays.

And according to Investor's Business Daily, the mining sector ranks No. 1 — "firmly" — this year among 197 industries tracked by that news source. Most of the biggest gains have come from thinly traded stocks priced under $10.

But if you missed gold's price climb of over 28% between January and now, it's not too late to climb aboard, according to Sean Boyd, CEO of well-regarded miner Agnico Eagle Mines Ltd.

According to Boyd, "I think in this cycle, [gold prices] will ultimately set an all-time high. There's still a tremendous amount of debt in the system," according to Boyd.

He continues, "There's an inability to create conditions for growth. You've got a negative-interest-rate environment, which is a great environment for gold from an opportunity-cost standpoint. And you've still got very strong demand… So all the factors are there that can steadily move gold up."

He also could have mentioned gold's increasing scarcity, which I addressed earlier. Read on to learn how rapidly dwindling gold supplies will force prices dramatically higher as new gold supplies struggle to keep up with exploding demand. Do we have the recipe for $10,000 gold?


Byron King
for The Daily Reckoning

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The post Gold Meets the "Perfect Storm" appeared first on Daily Reckoning.

The World Is Rapidly Depleting Its Gold Reserves

Posted: 10 Aug 2016 01:55 PM PDT

This post The World Is Rapidly Depleting Its Gold Reserves appeared first on Daily Reckoning.

Gold is one of the rarest elements in the world, making up roughly 0.003 parts per million of the earth's crust. (For some perspective, one part per million, when converted into time, is equivalent to one minute in two years. Gold is even rarer than that.)

If we took all the gold ever mined — all 186,000 tons, from the bullion at Fort Knox to India's bridal jewelry to King Tut's burial mask — and melted it down to a 20.5 meter-sided cube, it would fit snugly within the confines of an Olympic-size swimming pool.

The yellow metal's rarity, of course, is one of the main reasons why it's so highly valued across the globe and, for most of recorded history, recognized and used as currency. Unlike fiat money, of which we can always print more, there's only so much recoverable gold in the world. And despite the best efforts of alchemists, we can't recreate its unique chemistry in a lab. The only way for us to acquire more is to dig.

But for how much longer?

Goldman Sachs analyst Eugene King took a stab at answering this question last year, estimating we have only "20 years of known mineable reserves of gold."

The operative word here is "known." If King's projection turns out to be accurate, and the last "known" gold nugget is exhumed from the earth in 2035, that won't necessarily spell the end of gold mining. Exploration will surely continue as it always has — though at a much higher cost.

(In fact, our insatiable pursuit of gold might one day soon take us to space, as President Barack Obama signed legislation in November that permits commercial mineral extraction on asteroids and the moon. Many near-Earth asteroids are said to contain trillions of dollars' worth of precious metals and other minerals. But that's a discussion for another time.)

We'll probably see a surge in mergers and acquisitions. I think that as long as they have reliable output, mid-cap companies could be gobbled up by the Barricks and Newmonts of the world.

Another consequence of recovering the last known nugget? The gold price could spike dramatically to levels only imagined. My colleague Jim Rickards, in his book "The New Case for Gold," puts it at $10,000 an ounce. GoldMoney founder James Turk says it's closer to $12,000. There's really no way of knowing how high gold could go.

What we do know is that global gold output has been contracting since 2013. Last year might have been the tipping point, however, in line with Goldcorp CEO Chuck Jeannes' prediction that peak gold was within spitting distance.

"There are just not that many new mines being found and developed," he told the Wall Street Journal in 2014, adding that this was "very positive" for the gold price going forward.

This year, second-quarter mine supply was 2% less than the same period in 2015, according to preliminary estimates made by Thomson Reuters GFMS. Some analysts now expect global production to fall 3% in 2016, after seven straight years of growth.

What's more, few new projects and expansions are expected to come online this year, writes Thomson Reuters, "and those in the near-term pipeline are generally fairly modest in scale, hence our view that global mine supply is set to begin a multiyear downtrend in 2016."

Indeed, if we look at projects that opened in just the last two or three years, we see that they're of lower grade, meaning they don't produce nearly as much as older, easy-to-mine gold deposits.

The truth of the matter is, when it comes to discovering new gold deposits, the low-hanging fruit has likely already been picked. Gone are the days when someone could stumble upon an exposed hunk of gold at the bottom of a riverbed, as James Marshall did in 1848, setting off the California Gold Rush.

Every year, the pursuit of gold becomes increasingly more challenging — not to mention more expensive — requiring ever more sophisticated tools and technology, including 3D seismic imaging, direction drilling and airborne gravimetry. (A satisfactory "gold fracking" method, however, seems unlikely to become reality any time soon.)

Compounding the issue is the fact that the number of years between discovery of a new major deposit and production is widening, due to the increase in feasibility assessments, compliance, licenses and more — and that's all before nugget one can be extracted. The average lead time for gold mines worldwide is close to 20 years, though it can sometimes be more, depending on the jurisdiction. This highlights the need for worldwide policy reform to remove many of the barriers that obstruct responsible mining.

What all of this means is we'll probably continue to see fewer and fewer major discoveries, or those that yield more than a million ounces. As you can see below, new gold discoveries peaked in 1995. Exploration spending peaked nearly 20 years later when the price per ounce averaged $1,600.

Gold Running Low Chart

With gold now trading above $1,340 an ounce, up 28% for the year, many investors expect producers to begin lifting spending on exploration and production (or dividends). Instead, most companies are in cost-cutting mode, using this opportunity to pay down debt and liquidate assets. According to Reuters, North American gold producers have managed to lower their debt levels 30% since late 2014.

Speaking to, Newmont Mining CEO Gary Goldberg said his company, the second-largest gold producer in the world, is one of the few that's currently building new mines — specifically the Merian project in Suriname and Long Canyon in Nevada. Because of the lack of new mines being built, he sees supply falling 7% between now and 2021.

Demand for the yellow metal, on the other hand, should remain strong during this period, helping to support prices even more.

In the meantime, gold continues to find support from global monetary policy and low to negative government bond yields. Last week the Bank of England cut rates as part of a stimulus package, which both weakened the British pound 1.5% and gave the yellow metal a jolt.

These gains were erased, however, following Friday's better-than-expected U.S. jobs report, which sparked a rally in Treasuries. This contributes to the narrative that gold and government debt are inversely related, a key component of the Fear Trade.

When priced in the local currencies of the U.S., Canada, South Africa or Australia — four of the largest gold-producing countries — bullion is up, which has boosted miners' profits. Gold stocks, as measured by the NYSE Arca Gold Miners Index, have appreciated 129% in the last 12 months.

For the first half of 2016, inflows into commodities have been the strongest since 2009. Gold and other precious metals account for about 60% of the new money, which has pushed commodity assets under management above $235 billion.

Barclays believes 2016 could be the best year on record for gold-related ETFs and other funds, with many big-name hedge fund managers, from Stan Druckenmiller to Paul Singer to Bill Gross, singing the praises of the yellow metal.


Frank Holmes
for The Daily Reckoning

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The post The World Is Rapidly Depleting Its Gold Reserves appeared first on Daily Reckoning.

Gold Daily and Silver Weekly Charts - Up On Falling Dollar Early, Hit in the NY Trade

Posted: 10 Aug 2016 01:27 PM PDT

Smashed Silver Snaps Back into Ferocious Bull Market

Posted: 10 Aug 2016 11:58 AM PDT

The silver bull is back. After five long, frustrating years of price smashes followed by one failed rally attempt after another, silver prices have decisively broken out to the upside. The question facing precious metals investors now is: How sustainable is the uptrend?

This Suggests That Silver Will Soon Spike Significantly Higher

Posted: 10 Aug 2016 11:50 AM PDT

The silver price and the US Dollar/South African Rand exchange rate (USD/ZAR) have a very interesting relationship that goes back a long way. Basically, in the long run, the two move in opposite directions. When the USD/ZAR rate is moving up, then the silver price is moving down, and vice versa. Furthermore, when the USS/ZAR rate is making a top, then a bottom in silver is normally very close (before or after the USD/ZAR peak).

The Pleiadian High Council of Seven, The 5D Grid in Mother Earth

Posted: 10 Aug 2016 11:32 AM PDT

The Pleiadian High Council of Seven, The 5D Grid in Mother Earth Channeled by Daniel Scranton August 10, 2016 The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers...

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Silver and Inflation

Posted: 10 Aug 2016 11:10 AM PDT

the Silver Analyst

The Next Financial Crisis - Worst Economic Collapse Ever

Posted: 10 Aug 2016 09:30 AM PDT

We have been in the Second Great Depression since early 2008, seasonally adjusted BLS baloney and FED finagling not withstanding. Hey, hospitals could avoid many lawsuits by keeping many dead patients alive if they followed a similar path and made the monitors always beep and display a rhythm wave...

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The Charade Continues – London Gold and Silver Markets set for even more paper trading

Posted: 10 Aug 2016 09:14 AM PDT

Bullion Star

Terrorist Attacks Prevented in Crimea

Posted: 10 Aug 2016 08:57 AM PDT

Russia's Federal Security Service (FSB) has prevented terrorist attacks in Crimea that were planned by the Ukrainian Defense Ministry's intelligence agency, the FSB said. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free...

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The Bank of England just learned a lot about bond market liquidity

Posted: 10 Aug 2016 08:24 AM PDT

By Tracy Alloway
Bloomberg News
Wednesday, August 10, 2016

On Tuesday the Bank of England didn't manage to buy all the gilts it wanted at a reverse auction -- the first such shortfall since it began its bond-buying program back in 2009. The "uncovered auction" happened as investors proved reluctant to part with their holdings of longer-dated U.K. government bonds and could create a headache for policy makers seeking to offset the economic impact of the Brexit referendum by lowering borrowing costs.

The central bank snafu sparked a lively discussion over whether the Bank of England is reaching Japan-like technical limits in its sovereign-bond purchases or simply suffering from a temporary summertime trading lull. While the fact that today's auction proceeded without incident suggests the latter, the hiccup still speaks to a truism of the long-running debate over the ease of trading in the bond market: that a lack of liquidity is the flip side of a rampant search for yield amid low interest rates.

Or as Peter Boockvar, chief market analyst at The Lindsey Group, quipped: "A funny thing happened on the way to more QE from the Bank of England as some investors wised up and decided to not sell their longer-dated paper. ... After all, why give up higher-yielding bonds when the alternatives with the cash are pathetic?" ...

... For the remainder of the report:


Gold Standard Intersects 126.2 Meters of 3.95gpt Gold
At North Dark Star Oxide Deposit in Nevada's Carlin Trend

Company Announcement
Tuesday, August 9, 2016

VANCOUVER, British Columbia, Canada -- Gold Standard Ventures Corp. (TSXV: GSV; NYSE MKT:GSV) today announced assay results from the first three step-out core holes at the recently discovered North Dark Star oxide gold deposit on its fully owned and controlled Railroad-Pinion Project in Nevada's Carlin Trend. The results significantly increase the size of the North Dark Star deposit while also enhancing its prospective grade and establishing the orientation of a favorable trend supporting the potential for further expansion of the higher-grade zone.

The primary objective of this year's drill program at North Dark Star was to find a continuation of the high-grade zone discovered in core hole DS15-13 (15.4 meters of 1.85 grams of gold per tonne and 97 meters of 1.61 grams per tonne) at the end of last year's drill program. Hole DS16-08 located 100 meters south of DS15-13 returned multiple, significant, oxidized intercepts containing gold values above the cutoff grade established in the Dark Star NI43-101 resource estimate announced on March 3, 2015. Hole DS16-08 returned a 126.2-meter section grading 3.95 grams per tonne including higher-grade intervals of 44 meters of 4.70 grames per tonne, 17.9 meters of 5.6 grams per tonne, and 7.9 meters of 10.7 grames per tonne.

To see section maps and the drill plan:

... For the complete announcement:

Join GATA here:

New Orleans Investment Conference
Wednesday-Saturday, October 26-29, 2016
Hilton New Orleans Riverside
New Orleans, Louisiana

Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

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How Will Trump, Clinton and This Contentious Election Season Impact Gold?

Posted: 10 Aug 2016 07:22 AM PDT

Gold Stock Bull

Return on UK government bonds turns negative

Posted: 10 Aug 2016 05:23 AM PDT

From the British Broadcasting Corp.
Wednesday, August 10, 2016

The return on some UK government debt turned negative after the Bank of England missed its target in a new bond buying operation.

The bank had offered to buy government bonds, or gilts, as part of its new quantitative easing programme to stimulate the economy.

But the bank fell L52 million short of its L1.17 billion target when it failed to find enough sellers.

That has driven up prices and pushed down the return to investors, or yield. As bond prices rise, yields fall, and vice versa.

On Wednesday morning gilts maturing in 2019 and 2020 were yielding -0.1 percent. ...

... For the remainder of the report:


Camino Minerals Receives Approval to Drill
at Lost Cabin Project in Oregon

Company Announcement
Tuesday, August 9, 2016

Camino Minerals Corp. (COR: TSX-V, CAMZF:OTC) is pleased to announce that it has received regulatory approval to drill at the Lost Cabin project in south-central Oregon. The company has received notice from the U.S. Bureau of Land Management that it has accepted the plan of operation, described in the notice for exploration drilling submitted in September 2015.

On February 4, 2015, Camino announced it had optioned the Lost Cabin Project from La Cuesta International Inc.. The company has since completed a field evaluation of the project. Anomalous gold values were returned from grab samples, including 38.0 grams per tonne and 2.8 grams per tonne gold at the western end of the zone, as well as 5.5 gpt and 1.9 gpt gold in the east. The property lies within the Basin and Range Province in southern Oregon and covers a layered dome complex. Moderate to intense argillic alteration is exposed for more than 3 kilometers in a northwest trending valley. Within the exposed alteration are epithermal quartz veins, stock work, and breccias, which have potential to host a low-sulphidation, epithermal gold system.

For the complete announcement:

Join GATA here:

New Orleans Investment Conference
Wednesday-Saturday, October 26-29, 2016
Hilton New Orleans Riverside
New Orleans, Louisiana

Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit:

Peak Gold – Did Gold Production Peak in 2015?

Posted: 10 Aug 2016 05:03 AM PDT


Posted: 10 Aug 2016 04:52 AM PDT

end times, end times signs, end times news, end times events, bible prophecy, prophecy in the news, tornado, earthquake, strange weather, strange events, apocalyptic signs, apocalyptic events, strange weather phenomenon The Financial Armageddon Economic Collapse Blog tracks trends...

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Gold miner Centamin rides high after raising forecasts for the year

Posted: 10 Aug 2016 04:50 AM PDT

This posting includes an audio/video/photo media file: Download Now

Gold Price Closed at $1339.00 up $5.60 or 0.42%

Posted: 10 Aug 2016 03:20 AM PDT

9-Aug-16PriceChange% Change
Gold Price, $/oz1,339.005.600.42%
Silver Price, $/oz19.810.050.23%
Gold/Silver Ratio67.5780.1260.19%
Silver/Gold Ratio0.0148-0.0000-0.19%
Platinum Price1,156.504.500.39%
Palladium Price693.101.050.15%
S&P 5002,181.740.850.04%
Dow in GOLD $s286.12-1.14-0.40%
Dow in GOLD oz13.84-0.06-0.40%
Dow in SILVER oz935.35-1.99-0.21%
US Dollar Index96.01-0.21-0.22%

Signs Are Silver Bull Market Is Consolidating

Posted: 10 Aug 2016 02:49 AM PDT

Having hit a target, silver has formed what is believed to be an intermediate top over the past five weeks or so, which it should soon start to descend from, says technical analyst Clive Maund.

Gold Bullion Investors Versus the Machines

Posted: 10 Aug 2016 02:40 AM PDT

Precious metals prices fell sharply on renewed concerns the Federal Reserve will be raising interest rates sometime this fall. Friday’s jobs report painted a picture of healthy growth, fostering a new round of speculation that Janet Yellen and the FOMC will withdraw stimulus. Investors have seen this a thousand times before. The reaction in gold and silver markets was almost as predictable as the sunrise. When markets continually respond to highly managed data from the Bureau of Labor Statistics – or some other bureaucracy – in a machine-like way, you have to assume it’s because most of the trading is actually done by high frequency trading machines (HFTs).

Justin Trudeau : Another Puppet of the NWO Bankrupting Canada

Posted: 10 Aug 2016 02:07 AM PDT

"The first nine months of the Justin Trudeau Liberal government has been a public relations change, and that's it. The central bank policies remain the same and Harper's wars of aggression go on unabated..." The Financial Armageddon Economic Collapse Blog tracks trends and forecasts ,...

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Collapse Ahead - Where Should I Live? | Jim Willie

Posted: 10 Aug 2016 01:48 AM PDT

IN THIS INTERVIEW:Viewer Questions:- What are the odds of any western country to either ban the sale of gold or silver, attempt to confiscate gold or silver, or apply an onerous tax to the sale of one or both of the metals? ►0:37- Platinum and palladium vs. gold and silver ►3:34- What will be the...

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The Worst Global Crisis In History Will Be Triggered In The Next Few Months

Posted: 10 Aug 2016 01:40 AM PDT

The Worst Global Crisis In History Will Be Triggered In The Next Few Months
By Egon von Greyerz


Please click here to see my latest KWN interview.

Egon von Greyerz
Founder and Managing Partner
Matterhorn Asset Management AG… Read the rest

Breaking News And Best Of The Web

Posted: 09 Aug 2016 06:44 PM PDT

Bank of England having QE problems. US productivity drops for third straight quarter. Oil price stable on rumors of output cap. Stocks flat, gold and silver up on USD weakness. China trade data disappoints. US debt now has negative yield for foreign investors. Most Americans worse off today than in 2005. More good earnings reports […]

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Top Ten Videos — August 10

Posted: 09 Aug 2016 05:15 PM PDT

Four Horsemen, the documentary. Clinton Cash, the movie. John Williams on monetary dysfunction. Gold and silver from several angles.                    

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